Water is becoming a scarce commodity now-a-days, it is necessary to find ways and means of using the available water resources in a judicious manner to attain maximum productivity per unit quantity of water. Drip irrigation is one of the suitable methods of irrigation which is now being practiced in major cotton growing areas. It is realized that drip irrigation not only boost up the production but also reduce the water requirement, when it is practiced along with fertigation as water is provided most efficiently at right time and practically near the root zone of the crop. Increasing application rate allows more water to distribute in the horizontal direction, while decreasing the rate allows more water to distribute in the vertical direction. Drip irrigation in cotton significantly enhances the growth characters viz., plant height and DMP, improves the yield and helps to realize better returns. The influence of drip irrigation on growth and yield of cotton, water use efficiency and economics are reviewed in this paper.